Paul: I'll block Yellen nomination

Sen. Rand Paul said on Tuesday that he plans to place a hold on Janet Yellen’s nomination to be Federal Reserve chair to try and force a vote on a bill he argues would increase transparency at the central bank.

Paul has been hinting for weeks he would make the move and on Tuesday the Kentucky Republican confirmed he will take this step absent a vote on the Audit the Fed bill first championed by his father — former Rep. Ron Paul (R-Texas)

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“I don’t think technically you can file a hold until she comes out of committee — but we’re putting people on notice that we will,” Paul told POLITICO.

The Senate Banking Committee is considering holding a hearing on Yellen’s nomination on Nov. 14. After that is done, the committee would need to vote to approve the nomination.

Paul wrote Senate Majority Leader Harry Reid (D-Nev.) late Thursday to inform him of his plans.

“As the Senate debates the nomination of the next head of the Federal Reserve, there is no more appropriate time to provide Congress with additional oversight and scrutiny of the actions and decisions of the central bank,” Paul wrote.

Yellen, currently the Fed’s vice chair, is expected to be confirmed, but Paul’s hold could complicate the process if Republicans decide to rally around a call for a vote on his legislation. In order to get around a hold, 60 votes would be needed.

A version of the bill passed the House last year on a 327-98 vote.

The bill would authorize the Government Accountability Office to audit how the central bank implements monetary policy.

Federal Reserve officials, including current Chairman Ben Bernanke, oppose the bill, arguing it would threaten the central bank’s independence by adding a new dimension of political pressure to its monetary policy decisions.

“We’d lift it if we can get a vote,” Paul said of the hold. “We’ve been waiting two years on a vote on the Audit the Fed Bill. It passed overwhelmingly in the House and we’d be happy to lift the hold if we do get a vote.”

Democrats have dismissed Paul’s plan arguing the procedural hurdle can easily be overcome and that even if he succeeds in delaying the vote, Yellen will likely become the Fed’s acting chair once Bernanke departs.

“This doesn’t seem very well thought out, as anything but a publicity stunt,” said a Senate Democratic aide.

Last week, Paul’s office had said they had alerted Senate leadership they were considering placing a hold but that they “weren’t there yet.”